ARB reports slight revenue decline, H1 FY26 profit down 16%

ARB (ASX:ARB) has reported that unaudited management accounts for the six months ended Dec. 31, 2025 show total sales revenue of $358 million, down 1% compared with the same period last year.

Sales in the Australian Aftermarket channel fell 1.7%, reflecting demand for key models in the second quarter and ongoing fitting capacity constraints.

Meanwhile, sales to Australia’s OEM channel dropped 38.2% due to the timing of contracts and model releases, as previously flagged at the company’s annual general meeting in October 2025.

In contrast, export sales grew 8.8%, with shipments to the United States rising 26.1%.

ARB expects underlying profit before tax for 1H FY2026 to reach approximately $58 million, excluding one-off items including a $1.3 million gain from a property sale and $2.2 million in costs, including a goodwill impairment following the termination of its Thule distribution agreement in November 2025.

The underlying profit represents a 16.3% decline from the prior corresponding period.

The company attributed the fall in profit to lower gross margins caused by a weaker Australian dollar against the Thai baht and reduced factory overhead recoveries, following higher inventory levels in the previous period.

As of Dec. 31, 2025, ARB held $59.4 million in cash with no debt, following the payment of its FY2025 final dividend of 35 cents per share ($24.2 million) and a special dividend of 50 cents per share ($35.1 million).